Alibaba (BABA) PT Raised to $92 at Summit Research Amid Strong Q2
Summit Research analyst Henry Guo reiterated a Buy rating and boosted his price target on Alibaba (NYSE: BABA) to $92.00 (from $81.00) following strong September quarter results with revenue 4% above the Street and beating consensus on the bottom-line by three cents, despite aggressive investments.
Guo commented, "Total GMV of RMB 713B (28% Y/Y) in the quarter came in better than we had expected, reflecting the resilience of Alibaba platforms in its difficult macro environment. Additionally, we are encouraged by the further monetization improvement on both Tmall and Taobao - the blended take rate for China retail platforms improved 13bps Y/Y and 9 bps sequentially. As we are approaching the Double Eleven shopping day, we feel comfortable that the company should continue to deliver solid GMV growth and monetization improvement, which is likely to serve as a positive catalyst to BABA shares. We maintain our BUY rating on BABA shares and raise our PT from $81 to $92, which represents a P/E multiple of 30x our F2017 non-GAAP EPS estimate."
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Shares of Alibaba closed at $76.35 yesterday.